Chukyo Iyakuhin Co., Ltd. announced that it has received ¥300.13 million in funding from Chita Shinkin Bank and other investors.
March 22, 2013 at 12:00 am
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Chukyo Iyakuhin Co., Ltd. (JASDAQ:4558) announced a private placement of 875,000 common shares at a price of ¥343 per share for gross proceeds of ¥300,125,000 on March 7, 2013. The round will include participation from existing investors, Chita Shinkin Bank, which will invest for 400,000 shares and Directors, Masayuki Yamada will invest for 417,000 shares, Makoto Tsujimura will invest for 26,000 shares, and Yoshihiro Matsumoto, Koji Kanazawa, Toru Iida, and Shuji Yonezu will invest for 8,000 shares each. Chita Shinkin Bank, Masayuki Yamada, Makoto Tsujimura, Yoshihiro Matsumoto, Koji Kanazawa, Toru Iida, and Shuji Yonezu currently hold 0.98%, 12.86%, 0.49%, 0.58%, 0.17%, 0.11%, and 0.16% stake in the company respectively. Masayuki Yamada and Chita Shinkin Bank will hold 15.54% and 4.42% stake in the company upon closing. The shares will be issued by third party allocation. The board of the company approved the transaction. The company will receive net proceeds of ¥285,125,000 after issue expenses including financial advisory fee and registration and license tax, and other legal advisory fees of ¥15,000,000. The company has received opinion from its auditors that the transaction is not advantageous a legal violation.
On March 11, 2013, the company announced that existing investorsYamasho YK, Yukio Yamada, and Yuzo Yamada and Hiroshi Yamada, existing investor and Director of the company have filed an application for injunction to stop the new shares issuance.
On March 22, 2013, Chukyo Iyakuhin Co., Ltd. closed the transaction.
CHUKYOIYAKUHIN CO.,LTD. is a Japan-based company mainly engaged in the sale of regularly-placed medicines, health products, drinks, medical products, household goods, and other products to ordinary households. The Company operates through three business segments. The Retail segment is engaged in the sale of general households by sales staff. The Wholesale segment is engaged in the wholesale of products to other companies in the industry, mainly franchisees, and general distribution markets. The Water Sales segment is engaged in the manufacture and sale of mineral water. The Company is also engaged in the sale of insurance products.